We set out with a singular goal: bring the Steam experience, in its entirety, into the living-room. We knew how to build the user interface, we knew how to build a machine, and even an operating system. But that still left input - our biggest missing link. We realized early on that our goals required a new kind of input technology - one that could bridge the gap from the desk to the living room without compromises. So we spent a year experimenting with new approaches to input and we now believe we've arrived at something worth sharing and testing with you.

Where Microsoft and Sony show zero innovation with the Xbox One and the PS4, Valve is the one pushing limits. Their controller is quite, quite unique, and has a whole different approach than what we've seen before - instead of two inaccurate joysticks, it has two super-precise touchpads with advanced haptic feedback and the ability for both absolute and relative positioning. Go read the description - a summary won't do it justice. And, as always: hackable. Yes, even the controller is open and hackable. Wow.

They're on the right track here. If I were Microsoft or Sony, I'd start getting worried.

Remember that Microsoft and Sony will sell their new consoles at a loss. Not as much as the PS3/XB360 era, but definitely will to a certain degree. They do this because hardware cost comes down over time, and because they get high margins on software sold.

Valve can brag all they want about getting into the living room, but they need to sell hardware at a price point comparable to the new offerings of Sony and Microsoft.

If third parties are developing such hardware, they will definitely need to make a profit for it, so it's simply impossible for them to sell for less than the competition. Steam Machines will probably end up costing 500-800 usd.

Also, it's not much of an advantage when only a small portion of the Steam catalog is available for Linux..